Chinese carmakers bolster financial resources as sales flounder

Falling vehicle sales are increasing the pressure on Chinese carmakers and prompting many of them to bolster financial resources for the bumpy road ahead, analysts said.

Vehicle sales from January to July totaled 14.13 million units, down 11.4 percent year-on-year, according to the China Association of Automobile Manufacturers. It estimated that sales would drop 5 percent this year from 2018 to 26.68 million vehicles.

During the first seven months of this year, carmakers and parts manufacturers in the country had issued bonds worth 56.47 billion yuan ($7.9 billion), up 83.8 percent from the same period last year, according to the 21st Century Business Herald newspaper.